My wife has an LLC taxed as an S-Corp - she is the only employee. Currently she pays into a company sponsored 401k which is managed (I think somewhat expensively) by a third party. All they seem to have done is create our plan doc and yearly provide the IRS with a 5500.

I have a couple of questions regarding this...

Surely this has to be overkill?

Is there any reason why she couldn't have a Solo 401k that we can manage ourselves?

I'd like to ideally get rid of this company by the end of this year and move forward with the Solo 401k.

Thanks